The first reason is simple.....you BUY a stock like this for growth. What were the revenues up for the quarter YoY? 600% What is the estimate for the year? $15M LNKD is trading at 30 times REV and RENN is trading at 45 times What does that put QPSA at? $450M to $700M valuation There are many other metrics of comparison, but the bottom line is...the RISK vs REWARD for QPSA is 2-3 points downside risk for the potential to see $30-$50 And lastly, what if they actually have a big winner with Wonderful City?
Also, the $15m rev # for this year does not include game revs., at the current rate, we are at 2m MAU and adding >100k per day, est. for game revs. is $0.22-$0.32 per MAU (Monthly Ave User), we are looking at another $5m in revs.! I personally don't buy the $30 - $50 price targets some people pump, but a double from here should be easy over the next 3 months. The company needs to release new game updates and language versions in the next qtr to maintain good momentum.